Earnings per Share, which is also known as EPS, is one of the critical parameters to evaluate the performance of a company, the popularity of the share, and more. The investors find the metric as a useful factor to make a decision on whether to buy or sell the shares. Though it is an excellent option to judge a company, many people think that the metric should not be included as a performance factor in deciding employee incentives as well as salary structure. Another set of people think that including EPS in the salary structure and incentives is a brilliant idea. Even pay structure experts are confused on whether to include EPS as a metric or not.
Jeremy Goldstein, an expert in executive pay structuring with decades of experience, recently elaborated EPS and provided a solution that could address all the current concerns. He thinks that EPS is a good parameter to be included in the pay structure. Several recent studies have shown that adding EPS into overall pay structure helped a large majority of companies to perform greater in the market. It looked like a beneficial system that must be included in the business strategy of every company. But, the nature of competitive stock market trading and shares helps management to take unfair advantage of the metric. Learn more: http://jlgassociates.com/
Some critics of EPS dispute that it gives an advantage to the management for making favoritism, and instead of collective leadership, it gives tremendous power to the executives. Another set of people think that such metrics are only assuring short-term profitability with no focus on sustainable growth with long-term vision. This is where Jeremy Goldstein advises a beneficial method that contains all the concerns of EPS in the current condition. He asks the executives and stakeholders to take a moderate stand on the metric. While including EPS in the pay structure, it should be redesigned to focus on the long-term growth goals of the firm. It means that executives of every firm that includes the metric should be made responsible for their actions to ensure sustainable growth for the companies.
Jeremy Goldstein is one of the leading attorneys with a few decades of service in New York City area. He is also a legal entrepreneur as the founder of Jeremy L. Goldstein & Associates. Interestingly, his boutique law firm offers a wide range of services including advisory services on compensation committees, corporate governance matters, executive compensation structures for corporate companies, and more.
Jeremy Goldstein also collaborated with numerous acquisition teams as an expert in legal matters, compensation structures, and corporate governance. Some of the major companies he associated include Duke Enegery, Phillips Petroleum Company, United Technologies, South African Breweries plc., The Dow Chemical Company, J.P. Morgan Chase & Co., The Dow Chemical Company, Bank of America Corporation, and more.